Deck 11: Unique Marketing Issues

Question 1

The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called:

A) market positioning
B) market splitting
C) market targeting
D) market subdividing
E) market segmentation

Answer 1

E

Question 2

Andy Sanders owns a sporting goods store that appeals to hunters and fishermen. The market that Andy is trying to appeal to is called his:

A) focal market
B) objective market
C) target market
D) critical market
E) intention market

Answer 2

C

Question 3

A ________ illustrates a firm's positioning strategy relative to its major rivals.

A) product attribute map
B) positioning analysis grid
C) positioning plot
D) competitive analysis grid
E) positioning diagram

Answer 3

A

Question 4

Nike's familiar phrase "Just do it" is an example of a(n):

A) attention-line
B) tagline
C) notice-line
D) catchline
E) grabline

Question 5

A ________ is a place within a market segment that represents a narrower group of customers with similar interests.

A) position market
B) niche market
C) slot market
D) spot market
E) gap market

Question 6

Once a firm has segmented the market, the next step is to:

A) decide on a position within the segment
B) select a critical market
C) select a target market
D) select a focal market
E) immediately decide on the "4Ps" of the marketing strategy

Question 7

Brenda Berry is thinking about starting a computer company. After doing some research, she has decided that the computer industry can be divided into the following product categories: handheld computers, laptops, tablet computers, PCs, minicomputers, and mainframes. She is now trying to decide which product category she is the most interested in competing in. The process that Brenda is going through is called:

A) market splitting
B) market subdividing
C) market segmentation
D) market dividing
E) market separating

Question 8

Which of the following selections is incorrect regarding a firm's "positioning" strategy?

A) Position is concerned with how the firm is situated relative to its competitors.
B) A firm's decision about how to position itself relative to its competitors starts with a product or service idea that is tested and refined through feasibility analysis and marketing research.
C) Position is concerned with how a firm is situated relative to competitors.
D) Once a firm positions itself in a certain way, it must be able to follow through with a product or service offering that lives up to the image it has created.
E) After selecting a positioning strategy, the firm's next step is to select a target market.

Question 9

Some companies monitor the integrity of their brands through a program of:

A) brand administration
B) brand persistence
C) brand determination
D) brand resolution
E) brand management

Question 10

According to the textbook, a brand is all of the following except:

A) reputation
B) collection of memories
C) a pledge
D) a promise
E) a written warranty

Question 11

True You Cosmetics, the company profiled in the opening feature in Chapter 11, sells cosmetics products. The company's marketing efforts to date have focused heavily on:

A) Google AdWords and AdSense
B) print advertising
C) radio
D) social media
E) television advertising

Question 12

A product attribute map is used to help a firm determine:

A) if it is emphasizing benefits rather than features
B) if its branding strategy is appropriate
C) if its market segmentation is correct
D) if its positioning strategy is appropriate
E) if its target market is appropriate

Question 13

Creating ________ means creating awareness and a sense of anticipation about a company and its offerings.

A) ruckus
B) noise
C) clatter
D) clamor
E) buzz

Question 14

Which of the following is the correct sequence of events in regard to the process of selecting a target market and position strategy?

A) creating a unique positioning strategy, selecting a target market, segmenting the market
B) segmenting the market, creating a unique positioning strategy, selecting a target market
C) segmenting the market, selecting a target market, creating a unique positioning strategy
D) selecting a target market, creating a unique positioning strategy, segmenting the market
E) creating a unique positioning strategy, segmenting the market, selecting a target market

Question 15

Which of the following statements is incorrect regarding the process of building a company's brand?

A) A firm's name, logo, Web site design, and even its letterhead are part of its brand.
B) One of the keys to effective branding is to create a strong personality for a firm.
C) Some companies monitor the integrity of their brands through brand management.
D) Startups must build a brand from scratch, which starts with selecting the company's name.
E) Most experts recommend a heavy reliance on advertising in building a firm's brand.

Question 16

Research in Motion (RIM) is a handheld computer company that focuses specifically on business users that need dependable access to e-mail and the Internet while away from their office. For RIM, this specific type of user within the large business market segment is referred to as its:

A) gap market
B) task market
C) position market
D) hole market
E) niche market

Question 17

The What Went Wrong feature in Chapter 11 focuses on Ugobe, the company that made Pleo, a small robotic baby dinosaur. Ugobe failed primarily because it didn't establish a clear:

A) positioning strategy
B) branding strategy
C) social media strategy
D) financial strategy
E) advertising strategy

Question 18

InstyMed's phrase "We make patients better quicker" is an example of a(n):

A) tagline
B) grabline
C) notice-line
D) catchline
E) attention-line

Question 19

A(n) ________ is the set of attributes-positive or negative-that people associate with a company.

A) emblem
B) logo
C) symbol
D) brand
E) trade name

Question 20

Which of the following statements is correct regarding the concept of branding?

A) Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques.
B) A company doesn't normally want its customers to identify with its brand.
C) Startups usually start with an established brand.
D) A brand can be one of a company's most valuable assets.
E) A brand can denote a negative impression of a company.

Question 21

Which of the following is not one of the four elements that constitute a firm's marketing mix?

A) price
B) promotion
C) passion
D) place (or distribution)
E) product

Question 22

A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.

A) tribute account
B) reference account
C) approval report
D) appreciation account
E) acknowledgment report

Question 23

________ refers to the activities the firm takes to communicate the merits of its product to its target market.

A) Sponsorship
B) Advertising
C) Endorsement
D) Promotion
E) Price

Question 24

In ________, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

A) value-based pricing
B) tactical pricing
C) strategic pricing
D) cost-based pricing
E) economic-based pricing

Question 25

The Savvy Entrepreneurial Firm feature in Chapter 11 focuses on Airbnb, the company that created a marketplace for people to list, discover, and book unique spaces in people's homes or apartments while traveling. According to the feature, Airbnb was able to generate substantial buzz about its service via the use of:

A) Facebook
B) Google AdSense
C) blogs
D) newspaper ads
E) Twitter

Question 26

________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

A) Trademark equity
B) Brand equity
C) Logo equity
D) Trademark value-added
E) Trade name strength

Question 27

A firm's ________, in the context of its marketing mix, is the good or service it offers to its target market.

A) conception
B) idea
C) formation
D) product
E) invention

Question 28

According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.

A) value-based
B) cost-based
C) competitive-based
D) tactical
E) strategic

Question 29

Pat Walker owns an environmental services company. The way Pat prices her services is to figure her cost and then add a 22 percent markup. The method that Pat uses to determine her prices is called:

A) economic-based pricing
B) value-based pricing
C) competitive-based pricing
D) cost-based pricing
E) conformity-based pricing

Question 30

A firm's marketing mix consists of the following four elements:

A) product, price, promotion, and place
B) passion, pride, promotion, and place
C) passion, pleasure, product, and price
D) enthusiasm, passion, product, and price
E) place, promotion, passion, and product

Question 31

Karen Simon recently purchased a digital camera. She considered three cameras, a Kodak that was priced at $139.00, a Panasonic priced at $189.00, and a Nikon priced at $229.00. Karen couldn't tell much difference between the cameras, so she bought the Nikon, figuring that because it was the most expensive of the three, it must be the best. According to the textbook, Karen was making a:

A) price-quality attribution
B) price-merit attribution
C) cost-value acknowledgement
D) cost-worth attribution
E) price-worth acknowledgement

Question 32

A ________ is something that takes on a physical form, such as an MP3 player or a laptop computer. A ________ is an activity or benefit that is intangible, such as an airplane trip or advice from an attorney.

A) product, service
B) service, component
C) component, service
D) formation, service
E) service, product

Question 33

Which element of the marketing mix is the only one that produces revenue?

A) product
B) place (or distribution)
C) advertising
D) price
E) promotion

Question 34

Before Kim Green opened her jiffy print store, she processed several large print jobs for local merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the merchants wrote favorable reviews of Kim's service, and agreed to let Kim post the reviews on her company's Web site. The companies that wrote the favorable reviews are referred to as:

A) appreciation reports
B) acknowledgement accounts
C) referent accounts
D) tribute reports
E) approval reports

Question 35

The amount of money consumers pay to buy a product is its:

A) price
B) fee
C) value
D) cost
E) charge

Question 36

In ________, the list price of an item is determined by adding a markup percentage to a product's cost.

A) cost-based pricing
B) compliance-based pricing
C) value-based pricing
D) competitive-based pricing
E) economic-based pricing

Question 37

According to the textbook, a successful brand can increase the market value of a company by:

A) 5 to 10 percent
B) 20 to 30 percent
C) 40 to 50 percent
D) 50 to 75 percent
E) 75 to 100 percent

Question 38

A firm's ________ is the set of controllable, tactical marketing tools that it uses to produce the response it wants in the target market.

A) tactical mix
B) promotional blend
C) organizational mix
D) marketing mix
E) selling mix

Question 39

The Google program called ________ allows advertisers to buy keywords on the Google Home Page.

A) AdSense
B) Adcenter
C) AdWords
D) Search Marketing
E) AdGoogle

Question 40

Michael Jones owns a Web design firm. The way Michael prices his products is to determine what consumers are willing to pay, and then he backs off a bit to provide a cushion. The method that Michael used to determine his prices is called:

A) predatory pricing
B) technical pricing
C) cost-based pricing
D) competitive-based pricing
E) value-based pricing

Question 41

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Question 42

Which of the following statements is untrue regarding a firm's sales process?

A) A formal sales process helps a firm fine tune its approach to sales and build uniformity into the process.
B) Following a formal or structured process to generate and close sales benefits a firm.
C) A "sales process" is equally valuable whether a firm is selling directly to customers or through intermediaries.
D) A firm's sales process depicts the steps it goes through to identify its target market.
E) A formal sales process involves a number of identifiable steps.

Question 43

A tagline is a catchy phrase that's used consistently in a company's literature, advertisements, and even invoices and thus becomes associated with a company-to reinforce their position in the market.

Question 44

A firm's sales process:

A) is typically not put in place until a year or more after a startup launches
B) describes a firm's branding strategy
C) depicts the steps it goes through to identify prospects and close sales
D) describes its social media strategy
E) depicts the steps it goes through to identify its target market and positioning strategy

Question 45

"Brand premium" is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

Question 46

Efforts to establish and maintain a company's image with the public are referred to as:

A) open relations
B) public relations
C) civic relations
D) community relations
E) advertising

Question 47

Creating buzz means creating awareness and a sense of anticipation about a company and its offerings.

Question 48

The idea behind blogs is that they:

A) familiarize people with a business and help build an emotional bond between a business and its customers
B) are an effective recruiting tool and they help businesses network with government officials
C) help build an emotional bond between a business and its customers and are an effective platform for product development
D) are an effective tool for product development and familiarize people with a business
E) are an effective tool for recruiting and they familiarize people with a business

Question 49

A(n) ________ is a route a product takes from the place it is made to the customer who is the end user.

A) trade channel
B) product channel
C) allotment channel
D) promotion channel
E) distribution channel

Question 50

Every year thousands of electronic products manufacturers gather in Las Vegas to display their products and to see what their competitors are up to. This type of event is called a:

A) trade show
B) promotions show
C) deal show
D) goods show
E) skill show

Question 51

A product attribute map illustrated the strength of a firm's niche (or target) market relative to competing markets.

Question 52

The proper sequence in selecting a target market and positioning strategy is (1) craft a unique positioning strategy, (2) select a target market, and (3) segment the market.

Question 53

________ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.

A) Rebel
B) Bug
C) Catching
D) Guerrilla
E) Revolutionary

Question 54

The first step in the formal sales process described in the book is:

A) qualify the lead
B) make the sales presentation
C) prospect for sales leads
D) meet objections and concerns
E) make the initial contact

Question 55

Twitter, Facebook and company blogs are examples of:

A) public media
B) group media
C) shared media
D) social media
E) community media

Question 56

The Partnering for Success feature in Chapter 11 focuses on Moxsie, an online retailer that sells fashion items made by independent designers. Moxsie has accelerated its growth by:

A) partnering with an influential Web site and soliciting feedback from customers
B) running Google AdSense ads and soliciting feedback from customers
C) utilizing viral marketing and putting in place a formal sales process
D) utilizing guerrilla marketing techniques and entering into a strategic alliance with Google
E) co-branding its site with another online retailer and putting a formal sales process in place

Question 57

A brand is the set of attributes-positive or negative-that people associate with a company.

Question 58

A niche market is a place within a market segment that represents a narrow group of customers with similar interests.

Question 59

A firm's "position" is concerned with how it is situated relative to its rivals.

Question 60

Markets can be segmented in a number of ways, including by product type, price point, distribution channel used, and customers served.

Question 61

Price is the only element in the marketing mix that produces revenue; all other elements represent costs.

Question 62

What is the purpose of market segmentation? How are markets typically segmented? Can a company segment its market on more than one dimension?

Question 63

Describe the concept of guerrilla marketing. Why is guerrilla marketing particularly suitable for entrepreneurial firms?

Question 64

A firm's marketing mix is the assortment of products and services that it sells.

Question 65

What is an exclusive distribution agreement? Why do firms enter into exclusive distribution agreements with other firms?

Question 66

Many startups emphasize advertising over public relations primarily because it's cheaper and helps build the firm's credibility.

Question 67

What is a brand? How does a new firm develop a brand?

Question 68

The Google AdWords program allows advertisers to buy ads that will be shown on other Web sites instead of Google's Home Page.

Question 69

Social plugins are tools that Web sites can use to provide users with personalized social experiences.

Question 70

An important distinction should be made between a firm's core product and its actual product. While the core product may be a CD that contains an antivirus software program, the actual product may have a number of characteristics, include a quality level, features, design, a brand name, and packaging.

Question 71

Because of the weaknesses associated with advertising, most startups do not advertise their products broadly.

Question 72

What is a tagline? Provide an example of a popular tagline, and discuss why you think it has been effective?

Question 73

In value-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.

Question 74

A firm's sales process depicts the steps it goes through to identify prospects and close sales.

Question 75

A referent account is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.